For moderate risk takers: 5 midcap stocks with right levels of ROE with upside potential up to 37 %
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Synopsis
While last week nifty did witness corrective movement. While the overall trend is still bullish and valuations are still at elevated levels. In such times, it would be better that while looking at stocks one should also focus on reducing the risk by taking a hard look at some numbers which are critical indicators. Refinitiv’s Stock Report Plus which lists stocks with high upside potential over the next 12 months, having an average recommendation rating of “hold” or “buy” or “strong buy”.
When valuations are high but sentiments are bullish, it would be better to add the word “ caution” to your portfolio. Now how does one do it ? By putting some quantitative parameters when making a decision to buy a stock. Every sector has a different operating matrix which has high correlation with returns companies in that industry are able to generate. For some industries like software,15 to 20 percent net margins would be normal. For others,
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